Massachusetts State Auditor Reviews Workers’ Comp System

A new state audit has made recommendations to improve accountability and efficiency in the workers’ compensation system.

State Auditor Suzanne Bump said Thursday that her office’s review found that the Department of Industrial Accidents, which oversees the system, does not ensure that assessments paid out by insurance companies are accurate.

Bump says the audit has already led to a number of improvements at the department, including the hiring two internal auditors to review insurance assessments. The audit examined fee collections, claims payments, and internal procedures from July 1, 2010 to Sept. 30, 2012.

All private employers in Massachusetts are required to carry workers’ compensation insurance and pay claims by individuals through a commercial insurance policy, self-insurance, or membership in a self-insurance group.